Tata Motors Shares Jump Back In Green After 3 Days As Brokerage Sees 16% Upside

Shares of Tata Motors jumped back in the green on Wednesday morning ending its three-session losing streak.

What Happened: The jump today comes as JP Morgan maintained its “overweight” rating on the stock with a price target of ₹1,115. The target indicates an around 16% upside from the stock’s last closing price of ₹955.

The brokerage said that their monthly sales tracker for Jaguar Land Rover (JLR), shows a 21% year-on-year increase in May 2024 retail sales. Combined retail sales for April and May 2024 grew by 16% year-on-year, compared to a 13% year-on-year growth in the March quarter.

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According to monthly retail sales data from various markets, JLR’s performance in May surpassed that of other luxury car manufacturers in the US, EU, and China, the analysts added. Additionally, inventories in China have decreased sequentially, while in the US, incentives have moderated and inventories have increased from multi-year lows.

JP Morgan believes that Tata Motors’ stock has the potential to be re-rated over the medium term as the company’s balance sheet strengthens and earnings per share (EPS) volatility decreases.

Price Action: Tata Motors’ share price was up 0.42% to trade at ₹959 in early trade on Wednesday.

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